Julie Hood’s Post

Here are some of the latest news and developments in the manufacturing industry: General Motors (GM) CEO Mary Barra has no plans to retire soon, as the automaker continues its transformation towards electric vehicles (EVs) and innovative technologies. However, the rollback of EV incentives in the Inflation Reduction Act could benefit China, according to a GM board member. GM's all-electric Chevy Equinox has recently gone on sale. In the aerospace sector, Boeing supplier Spirit AeroSystems has laid off workers due to lower deliveries. Meanwhile, Boeing expects a slower production increase of its 787 Dreamliner aircraft. Honda announced plans to build a $11 billion EV hub in Canada as it accelerates its shift towards electric vehicles. 3M is investing $67 million to expand its facility in Valley, Nebraska, creating about 40 new jobs to increase manufacturing capacity and meet customer demand. [1] Stellantis, the automaker behind Jeep, is shaking up its workforce amid the electric shift, while Dodge and Ram boss Tim Kuniskis is retiring from the company. [2] PepsiCo is expanding its use of hydrotreated vegetable oil (HVO) across its supply chain to reduce its carbon footprint. [5] In the UK, a new battery-powered train commenced testing, aiming to reduce the rail industry's carbon emissions. [5] These stories highlight the industry's focus on sustainability, electrification, workforce changes, and capacity expansions to meet evolving market demands. [1][2][5] Sources [1] Latest Industry & Manufacturing News and Press Releases https://lnkd.in/gzbHWj_J [2] Manufacturing Today: Digital manufacturing magazine https://lnkd.in/g9r9PRJ7 [3] Manufacturing.net https://lnkd.in/gKhcyrMW [4] Manufacturing - CNBC https://lnkd.in/gwrcg9qB [5] Manufacturing news, articles and insights https://lnkd.in/ek2mhe9M

Volkswagen faces stagnant profits in 2024 amid economic uncertainty and electric car challenges. Despite competitive vehicles, VW's weak profitability reflects its politically influenced ownership structure, deterring some investors. Financially, VW's 2023 operating profit margin decreased, with projections indicating slower sales growth. The company struggles in the electric vehicle market, failing to meet initial promises amid fierce competition. Analysts express doubts about VW's profitability targets, highlighting concerns like meeting EU regulations and heavy reliance on high-priced models. While shares seem cheap, uncertainties cloud VW's future path, prompting caution among investors. #Volkswagen #AutomotiveIndustry #ElectricVehicles #Investment #BusinessChallenges

Stellantis has become the 4th largest automobile company through a series of mergers and acquisitions over the last decade or so. This was supposed to allow the company’s car brands to share the costs of developing new technology and save money by using common components. At the same time, however, working across so many countries and markets has given it an identity crisis, and also increased costs of integrating so many different companies, with o many management styles, cultures and organizational structures. It is especially struggling in the US, which accounts for about 50% of its sales. https://lnkd.in/epZR68py

Renault Withdraws Ampere EV IPO Amid Market Challenges: In a notable strategic shift, Renault has withdrawn on Monday, January 29 its plan to list its electric vehicle and software division, Ampere. This decision comes amid stagnant stock market conditions and a reassessment of the company's financial strategy. Renault's CEO, Luca de Meo, emphasized the pragmatic nature of this decision, focusing on long-term value creation for stakeholders. In September, Ampere's valuation goals reached €8 billion, accounting for a substantial portion of Renault's €10.1 billion market value. Despite these ambitious plans, Renault has now decided to continue funding Ampere's research and development independently, aiming for a break-even point by 2025. Renault, under de Meo's leadership, is realigning its focus in response to these market pressures. Despite abandoning the IPO, Renault's commitment to the EV sector remains steadfast, with the development of Ampere being a critical component of its future strategy. This move signifies Renault's adaptability and prudence in a rapidly evolving automotive landscape, balancing innovation with financial stability. Global IPO Market and EV Sector Pressures:   The global IPO market has experienced its lowest activity in over a decade, largely due to surging interest rates. Ampere's initial public offering was intended to distinguish the EV segment from Renault's traditional internal combustion engine production. However, challenges such as increased competition from Chinese EV makers and a slowdown in European EV demand, particularly from rental firms reducing their EV fleet investments, have added complexities to the situation. This context becomes more poignant following Tesla's recent underperformance. Conclusion: The cancellation of the Ampere IPO by Renault highlights the intricate dynamics within the EV industry, where companies must navigate between innovation, market trends, and economic sensibilities. Renault's decision to self-fund Ampere's development until 2025 reflects a strategic approach focused on sustainability and long-term growth in the face of shifting market conditions. Renault's journey will continue to be a significant indicator of the direction and health of the global EV market. Sources: financial times, Bloomberg, reuters Writing: Andrade Duprat Publication & Review: Julien Debarge

New developments are underway at Volkswagen's battery unit as they delay IPO plans until 2026. Thomas Schmall, the division's chief, shares crucial insights into this strategic decision, highlighting the necessity of operational factories and a unified battery cell. Learn more about Volkswagen's electrification strategy and its impact on the EV market. Read the full article here: https://lnkd.in/d4GBfqXj #Volkswagen #BatteryUnit #IPO #EVIndustry #ElectricVehicles"

Interesting perspective over 10 years Observing Market cap in comparison to revenue is very insightful. Despite not being #1, Toyota seems to have the best solidity built on the “real” market. #automotive #marketcap #trends

Movers and shakers in the last decade, in automotive. 1. Tesla - Most significant positive change, emerging as a market leader. 2. BYD - Significant growth, now a major player in the electric vehicle market with substantial market cap and revenue. 3. Stellantis - Positive shift due to the merger of FCA Fiat Chrysler Automobiles and Groupe PSA 4. Volkswagen Group - Maintained strong revenue and improved market cap. 5. Porsche AG - Improved brand distinction and market cap. 6. GEELY - Significant growth through strategic acquisitions. ➡️ 2004: https://lnkd.in/d-KMjhmq ➡️ 2014: https://lnkd.in/d_QC7vrF ➡️ 2024: https://lnkd.in/dYuZk5HK If you want the data behind the top 20, leave a comment. #ww520 #ww253 #technology #markets #innovation #future #strategy

10 Year Change in Automotive OEMs Market Cap vs. Revenue

"GM, Ford and Stellantis spent a combined $22.7 billion buying back their shares and paying dividends last year. It’s a remarkable sum for companies that were pleading poverty only a few months ago." "While their early [EV] wagers have been big money-losers thus far, paring investments back while splurging on shareholders puts their long-term futures at risk." Another surprising move from the Big 3, as previously highlighted and commented by Lukas Neckermann and James Carter. What are your thoughts on this? #sharebuybacks #dividends #EVinvestments

World Map of Automotive Manufacturers - 2024